On December 13, 2017, CMS released guidance on its rate reduction for 340B drugs under Medicare Part B. The guidance confirms that beginning January 2018, Medicare will subtract 22.5% from the adjusted sales price when paying for 340B drugs furnished to a Medicare beneficiary by an otherwise non-exempt hospital. The agency also established two modifiers for identifying 340B drugs. Providers will be required to report these modifiers on their OPPS claims beginning in January 2018.